Federal government to announce a deficit of $64 billion over next 2 years
 

Report: Federal government to announce a deficit of $64 billion over next 2 years
Local reaction mixed
Jim Goddard VANCOUVER (NEWS1130) | Thursday, January 22nd, 2009 3:12 pm

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Federal Finance Minister Jim Flaherty will table budget next Tuesday (News1130 file photo)

VANCOUVER (NEWS1130) - The federal government has announced it will run deficits for up to five years, including a shortfall of $64 billion over the next two fiscal years. A senior government official says next week's federal budget will forecast a $34 billion deficit for 2009-2010, and $30 billion more for the following year. The news is drawing mixed reaction from federal, provincial and local leaders.

The Canadian Taxpayers Federation believes the federal government has needlessly gone into panic mode. Kevin Gaudet says instead of giving billions to select economic sectors, Ottawa would do a better job of stimulating the economy by bringing in sizable personal and business tax cuts. He says that's a big part of President Obama's economic plan in the U.S.

Gaudet says a 64 billion dollar deficit over two years is mortgaging the future of Canadians. B.C. Premier Gordon Campbell says the federal deficit is fine with him if it results in better housing and transportation for Canadians.

Meanwhile the Vancouver Board of Trade says while it believes a short term deficit is needed to fire up the economy, it might also have to re-activate its 'debt clock' to remind us about the state of our national finances.

The government's forecast calls for a return to surplus in five years.


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yay more debt!

Honestly our Debt was reduced quite a bit few years ago. :)

Do you even understand why this debt is necessary?

wat

http://img.photobucket.com/albums/v1...tieway/wat.jpg

^LOL

I'll believe the surplus in 5 years when I see it